Abraham Silberstein pays $2M to Margate Atlantic for 4 units in Crown Heights

Abraham Silberstein through the entity Abe Franklin LLC paid $2 million to Margate Atlantic Properties through the entity Dhm 594 Franklin LLC for the four-unit building (C3) at 594 Franklin Avenue in Crown Heights, Brooklyn. The expected use is cash flowing.
The deal closed on August 22, 2024 and was recorded on September 4, 2024. The property has 3,296 square feet of built space and 1,504 square feet of additional air rights for a total buildable of 4,800 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $621 and the price per buildable square foot is $427 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on August 17, 2016, for $1.3 million. The signatory for Margate Atlantic Properties was Michael Betesh. The signatory for Abraham Silberstein was Abraham Silberstein. The contract date was May 20, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Abraham Silberstein had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Margate Atlantic Properties had not purchased any other properties and sold one properties in one transaction for a total of $3.5 million over the same time period. The former owner according to the Department of Housing Preservation and Development is John Vandecker, head officer. The business entity is Dhm 594 Franklin Llc.

The property

The 1-4 family building with 4 residential units in Crown Heights has 3,296 square feet of built space and 1,504 square feet of additional air rights for a total buildable of 4,800 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 80 feet deep with a total lot size of 1,600 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $715,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received two housing violations and $350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial rehab certificate of occupancy on June 4, 2018. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of seven of the 26 commercial properties representing 31,732 square feet of the 113,322 square feet. The largest owner is Clipper Realty, followed by Clarissa Eubanks and then G-Way Management.
On the tax block, there were four new building construction projects totaling 361,586 square feet. The largest is a 234-unit, 164,763 square-foot residential (R-2) building submitted by Solomon Schwimmer, Clipper Equity and filed by Solomon Schwimmer with plans filed March 6, 2022 and permitted May 27, 2022. The second largest is a 234-unit, 164,763 square-foot residential (R-2) building submitted by Solomon Schwimmer and filed by Solomon Schwimmer with plans filed March 6, 2022 and permitted May 27, 2022.

The majority, or 32 percent of the 113,322 square feet of built space are office buildings, with mixed-use buildings next occupying 30 percent of the space.

The seller

The PincusCo database currently indicates that Margate Atlantic Properties owned at least three commercial properties with one residential unit in New York City with 27,992 square feet and a city-determined market value of $6.6 million. (Market value is typically about 50% of actual value.) The portfolio has $13.8 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 92 percent of the 27,992 square feet of built space are office properties, with mixed-use properties next occupying 8 percent of the space. They are all located in Brooklyn.

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